Debts Recovery Tribunal allowed the bank's application for recovery of dues totaling Rs. 26.91 lakhs under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, permitting sale of hypothecated movables if the sum remains unpaid.
Recovery of Rs. 26,91,973.67 with interest and penal interest; liberty to realize amount by sale of hypothecated movables.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
O.A. No. 222 of 2022
15.07.2025
1
IN THE DEBTS RECOVERY TRIBUNAL-III, CHENNAI
Dated this the 15th day of July, 2025
Present: SMT. S.V. GOWRAMMA Presiding Officer
ORIGINAL APPLICATION No. 222 of 2022
M/s. Kotak Mahindra Bank Limited, No. 141, 8th floor, Zone-2, TVH Agnitio Park, Old Mahabalipuram Road, Kandhanchavadi, Chennai-600 096. Represented by its Manager-Legal
…. Applicant
-Vs-
Villivakkam, Chennai - 600 049.
Counsels on record / appeared:
Counsel for Applicant : M/s. Ananda Gomathy Murugesan
Defendants 1 & 2 were set ex-parte on 09.09.2022
: - FINAL ORDER - :
Lakhs Ninety One Thousand Nine Hundred Seventy Three &
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Paise Sixty Seven only) as follows:
for sale of scheduled mentioned hypothecated movables and for costs of this Original Application.
Brief Facts of the case:
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a. Demand Promissory Note dated 25.05.2019 for Rs.8,19,286-with interest at the rate of 20.02% per annum with compounded monthly rests.
b. Loan cum guarantee agreement, vide Agreement No. SA859223 for Rs.8,19,286/- repayable in 35 Equated monthly instalments of Rs.31,010/starting from 20.06.2019 and further hypothecating CB FORCE TEMPO TRAVELLER more fully described in Schedule-"A".
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of another Loan for purchase of new vehicle being FORCE TEMPO TRAVELLER for further expansion of their business. The same was considered favorably by the Applicant bank and applicant bank had sanctioned the Light Commercial Vehicle Loan for purchase of FORCE TEMPO TRAVELLER in a sum of Rs. 14,72.967/- to the Defendants during February, 2020 under the Lean Agreement No. LCV1496338 dated 10.02.2020.
a. Demand Promissory Note dated 10.02.2020 for Rs.14,72,967/- with interest at the rate 12.89% per annum with compounded monthly rests.
b. Loan cum guarantee agreement No. LCV1496338 for
Rs.14,72,967/-repayable in 47 Equated Monthly Instalments of Rs.40,150/with effect from 15.03.2020 further hypothecating FORCE TRAVELLER morefully described in Schedule-"A".
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business enterprises / Micro, Small and Medium Enterprises sector in view of the economic distress caused by the COVID-19 pandemic. The same was considered favorably by the Applicant bank and sanctioned the Emergency Credit Line Guarantee Scheme (ECLGS) in a sum of Rs.4,24,500/- to the defendants during November 2020 vide Sanction Letter Dated 28.10.2020 under Loan Agreement No. LCV1604272.
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classified as a Non Performing Assets on 13.06.2021.
Heard the submissions of Applicant Bank and perused the records.
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: O R D E R :
(a) The applicant bank is allowed to recover from the defendants jointly and severally a sum of Rs. 26,91,973.67p (Rupees Twenty Six Lakhs Ninety One Thousand Nine Hundred Seventy Three & Paise Sixty Seven only) as follows:
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LCV-1604272) repayable together with further interest @ 9.25% p.a. with compounded monthly rests along with penal interest at the rate of 3% p.m. from the date of filing till the date of realisation in full, along with costs of this application.
(b) In the event of failure of the Defendants to pay the aforesaid amount, the bank is at liberty to recover the amount by sale of the schedule A mentioned movable hypothecated items more fully detailed in the OA schedule.
(c) Schedule A mentioned movable hypothecated movables shall be appended to this final order.
(d) The applicant bank shall file the latest memo of calculation of OA amount together with interest, costs etc., to be paid by the Defendants duly considering the amounts, if any, paid by the Defendant and/or amount realized by sale of assets etc., during the intervening period after the filing of the OA, enabling the Registry to prepare Recovery Certificate for the amount to be paid by Defendants to the applicant bank.
(e) The applicant bank shall file memo of costs within ten days from the date of receipt of this final order.
(f) Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of the final order.
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Sd/- (S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
(Dictated to Steno (Ponmalar), transcribed by her, corrected, signed and pronounced by me
on this the 15th day of July, 2025)
ANNEXURES
WITNESSES EXAMINED FOR THE APPLICANT BANK :
AW-1: Sh. P. Thiyagarajan, Chief Manager of the Applicant Bank
Exhibits on the part of the Applicant:
| Sl.No. | Date | Description of Docu | ments | Exhibit No. |
|
|---|---|---|---|---|---|
| 1. | 27.04.2019 | Customer Relation Form defendant |
of the | 1st | A-1 |
| 2. | 27.04.2019 | Customer Relation Form defendant |
of the | 2nd | A-2 |
| 3. | 27.04.2019 | Linkages of Product Form from submitted by the defendants |
of the 1stand |
CRF 2nd |
A-3 |
| 4. | 25.05.2019 | Demand Promissory Rs.8,19,286/- |
Note | for | A-4 |
| 5. | 25.05.2019 | Loan cum Guarantee along with schedules 8,19,286/- executed defendants |
Agreem for by |
ent Rs. the |
A-5 |
| 6. | 04.02.2020 | Customer Relation Form defendant |
of the | 1st | A-6 |
| 7. | 04.02.2020 | Customer Relation Form defendant |
of the | 2nd | A-7 |
| 8. | 10.02.2020 | Linkages of Product Form from submitted by the defendants |
of the 1stand |
CRF 2nd |
A-8 |
| 9. | 10.02.2020 | Demand Promissory Rs.14,72,967/- |
Notice | for | A-9 |
| 10. | 10.02.2020 | Loan cum Guarantee along with schedules |
Agreem for |
ent Rs. |
A-10 |
| 14,72,967/- executed |
by | the |
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| defendants | |||||
|---|---|---|---|---|---|
| 11. | 28.10.2020 | Credit Sanction Rs. 4,24,500/- |
Advise for ECLG | S of | A-11 |
| 12. | 11.11.2020 | Term Loan Rs.4,24,500/- |
Agreement | for | A-12 |
| 13. | 11.11.2020 | Deed of Rs.4,24,500/- |
Hypothecation | for | A-13 |
| 14. | 28.07.2021 | Registered Not Applicant Bank |
ice issued by |
the | A-14 |
| 15. | -- | Statement of Certificate |
Accounts and |
BBE | A-15 |
Witness Examined for the Defendants: -Nil-
List of Documents Exhibited for the Defendants: -Nil –
:SCHEDULE-A:
DESCRIPTION OF TH HYPOTHECATED ITEMS
| 1) | Hypothecation of CB FORCE |
TEMPO | TRAVELLER |
|---|---|---|---|
| Vehicle Registration Number | : | TN 18 AW 4893 | |
| Maker’s Name | : | Force Motors Limited | |
| Engine Number | : | 40690 | |
| Chassis Number | : | 58666 |
| 2) | Hypothecation of CB FORCE | TEMPO TRAVELLER |
|---|---|---|
| Vehicle Registration Number | : TN 18 S 7198 |
|
| Maker’s Name | : Force Motors Limited |
|
| Engine Number | : D63029307 |
|
| Chassis Number | : MC1E4CFAXGP040305 |
Sd/- (S.V. GOWRAMMA) PRESIDING OFFICER, DRT-III, CHENNAI
1 provisions across 1 enactments
M/s. Kotak Mahindra Bank Limited
Mr. D. Balaji
Mrs. D. Saravanakumari
S.V. Gowramma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
